A flurry of fixtures for the key Persian Gulf to Far East route saw Asian VLCC freight rates move above the 50 Worldscale point mark Thursday for the first time in four months, according to market sources tracking the segment.
“There were at least 10 cargoes in the market last night, it was very busy and I see another five-10 left for October loading dates,” said a broker on the busy fixing activity for VLCCs out of the Persian Gulf region.
SPC placed the Maran Apollo on subjects for a Basrah-Singapore voyage with options, loading October 30-31, at w59 for Singapore discharge, and w57.5 basis Far East discharge, basis 270,000-mt cargoes, sources said.
The VLCC Persian Gulf to Japan rate was last above the w50 mark on June 14, when it was assessed at w53.5.
“The VLCC rate could get to w60 — there are still several cargoes looking for vessels,” said a charterer.
When VLCC rates for the Persian Gulf-Japan route were in the low-w30s, earnings were around $12,000/day. Now, with the rates above w50, it is in the $30,000/day range, according to industry estimates.
Source: PlattsPrevious Next